An Inplementation Strategy for the Utilization of Wind Energy in Estonia

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An Inplementation Strategy for the Utilization of Wind Energy in Estonia Utilization of Wind Energy in Estonia, Phase 1 Danish Energy Agency j.nr. 2136/053-960400 Final Report OTf' An Implementation Strategy for the Utilization of Wind Energy in Estonia Phase 1: Pre-feasibility Study and Project Identification O ST 1 Carried out by: Darup Associates Ltd. Tallinn Technical University PA Energy Ltd. Thermal Engineering Department SI Credit Ltd. for: .... @ The Danish Energy Agency j.nr. 2136/053-960400 December 1997 DISCLAIMER Portions of this document may be illegible electronic image products. Images are produced from the best available original document. Utilization of Wind Energy in Estonia, Phase 1 Danish Energy Agency j.nr. 2136/053-960400 Final Report Preface This report presents the results of a pre-feasibility and project identification study with the purpose of investigating the possibilities for wind energy in Estonia and to recommend on possible actions. The study was carried out during a number of visits in Estonia by Dr. Per Lundsager, Damp Associates, Mr. Peter Ahm, PA Energy, and Dr. Seppo Islander, SI Credit. In Estonia the consultants collaborated with Mr. Velio Selg and Dr. Amo Valma, senior scientists in Thermal Engineering Departmant at Tallinn Technical University, and their participation in the project is greatly appreciated. In addition to facilitating contacts and providing data their insight in the Estonian wind energy scenario has been of great value to the study. Meetings were held with the stakeholders in Estonian wind energy, in particular the Ministry of Economy, Ministry of Environment, the Electricity Price Committee, Eesti Energia, the Estonian Energy Research Institute and Tallinn Technical University. Also meetings were held with Viimsi Vald, the Hiiumaa Center for the Biosphere Reserve and the Estonian Power and Heat Association. Professor Umar Opik, Academician, Chairman of the Electricity Price Committee, kindly made himself available for a most interesting and valuable discussion of some principal issues relating to the implementation of wind energy in Estonia including possible future developments in capacity needs, costs of energy and rates & tariffs. The assistance in reviewing the fact sheets and other comments and information from the following persons and organisations is gratefully acknowledged: Mr. Mart Mallo (Ministry of Economy), Mr. Tonu Suurkuusk (Eesti Energia), Prof. Arvo Ots (Tallinn Technical University, Department of Thermal Engineering), Ms Inge Roos (Academy of Sciences, Estonian Energy Research Institute), Mr. Lembit Tammsaar (Viimsi Vald), Mr. Ruuben Post (Hiiumaa Center for the Biosphere Preserve), Mr. Rein Hanni (Director of Estonian Power and Heat Association) and Dr. Tonu Lausmaa (Re-En Center Taasen). The study was financed by contract j.nr. 2136/053-960400 with the Danish Energy Agency Damp Associates Ltd. December 30,1997 PA Energy Ltd., SI Credit Ltd, Page 2 of 116 C:\WORKDlR\Damp ProjXESTONIAXFase 1 ReportXReport outline.wpd Utilization of Wind Energy in Estonia, Phase 1 Danish Energy Agency j.nr. 2136/053-960400 Final Report An Implementation Strategy for the Utilization of Wind Energy in Estonia Phase 1: Pre-feasibility Study and Project Identification Contents Preface ..................................................................................................................................... 2 1. Summary .......................................................................................................................5 2. Introduction ...................................................................................................................6 3. Present situation regarding wind energy in Estonia .......................................................8 3.1 Energy options and Technical Feasibility 8 3.2 Justification for wind energy 9 3.3 Institutional issues and legislation 10 3.4 Technical and Economical Issues 11 3.5 Existing data & previous proj ects 11 3.6 Possible project opportunities 12 4. Proposed Wind Energy Related Activities...................................................................14 4.1 Institutional Issues 14 4.2 Follow-up on Previous Projects 15 4.3 Demonstration of Wind Energy 15 4.4 Capacity Building 16 4.5 Summary of Estimated Costs and Durations 17 5. Conclusions and Recommendations ...........................................................................18 References................................................................................................................................19 APPENDICES.........................................................................................................................20 A Project Proposal, TOR................................................................................................. 21 B Schedule of visits in Estonia ........................................................................................35 B. 1 Visit in Estonia 3-6 June, 1997 35 B.2 Visit in Estonia 2-5 August, 1997 36 B.3 Visit in Estonia 15 August, 1997 36 B. 4 Visit in Estonia 15-17 December, 1997 37 C Persons & Organizations ............................................................................................. 38 C. l Persons met/contacted by telephone: 38 C.2 Others 38 C.3 Organisations 39 Damp Associates Ltd. December 30,1997 PA Energy Ltd., SI Credit Ltd, Page 3 of 116 C:\WORKDIR\Damp Proj\ESTONIA\Fase I ReportXReport outline .wpd Utilization of Wind Energy in Estonia, Phase 1 Danish Energy Agency j.nr. 2136/053-960400 Final Report D Overall and Institutional Issues....................................................................................42 D.l Energy Act Concepts 42 D.2 Wind Resources 43 D.3 Electricity supply systems 46 D.4 Rates & tariffs 48 D. 5 Stakeholders 52 E Previous Project Experience ........................................................................................54 E. l Genvind 150 kW at Tahkuna 56 E.2 Wind diesel system in Prangli 61 F Wind Energy Demonstration ........................................................................................65 F. 1 Background 65 F.2 Justification 66 F.3 Outline Proposal 66 F.4 Grid connected wind farm near Tallinn 68 F. 5 Autonomous wind diesel system in an island 83 G Capacity Building ........................................................................................................97 G. 1 R&D wind turbine at TTU 99 G.2 Wind Energy knowledge center at TTU 103 H Letters of Intent.......................................................................................................... 108 I Papers.......................................................................................................................... 115 Damp Associates Ltd. December 30,1997 PA Energy Ltd., SI Credit Ltd, Page 4 of 115 C:\WORKDIR\Darup Proj\ESTONIA\Fase 1 ReportVRcport outline.wpd Utilization of Wind Energy in Estonia, Phase 1 Danish Energy Agency j.nr. 2136/053-960400 Final Report 1. Summary This report presents the results of a pre-feasibility and project identification study with the purpose of investigating the possibilities for wind energy in Estonia and to recommend on possible actions, as outlined in Letters of Interest from the Estonian Ministries of Economy and Environment in 1995. Wind as source of energy in Estonia appears not yet to have been analyzed in detail. Available data indicates that wind can constitute a viable domestic source of energy, as average wind speeds of about 6 m/s (at 10 m) are reported at many coastal regions of Estonia. With state-of-the-art wind energy technology this means cost of wind produced electricity about 0.7-0.8 EEK/kWh - comparable to the cost of electricity from a modern coal- fired power plant. Two types of grids exist in these regions: On the mainland and on islands with sea cable grid connected wind turbines can be implemented. On islands without sea cable wind turbines can be connected to the diesel powered local grids. At present Eesti Energia has a surplus of generating capacity, but out phasing ofgenerating equipment and rising demands of electricity are forecasted to meet no later than year 2010. With present rates & tariffs wind energy cannot be introduced on a commercial economic basis, but the ongoing liberalization of the energy sector in Estonia will lead to world market level cost of energy, making wind energy generally competitive with new fossil fueled power plants. Wind energy technology has a certain lead time as any new energy technology, and a lead time of 10-15 years is estimated in the case of Estonia, depending on the level of ambition of the main stakeholders and the development of the cost of electricity. Thus the timing is considered right to initiate wind energy technology and knowledge transfer type activities that include demonstrations. It has been found in the study that a technical and organizational infrastructure exists in Estonia that can accommodate and utilize the Danish experience with deployment of wind energy on a national basis. A number ofpossible wind energy related activities have been discussed and their feasibility was assessed in a preliminary way. The conclusion is that it is relevant to perform detailed assessments of the feasibility of demonstrating both grid connected and autonomous wind energy systems, in collaboration with Eesti Energia and with Eesti Energia as technology carrier. A Letter of Interest to this effect has been signed by Mr. Jaak Maarend, technical director of Eesti Energia. It has furthermore been concluded that if wind energy demonstration is decided upon, it
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